TikTok content creators are set to earn more, as the platform will soon begin sharing revenue with them. However, there are conditions.
TikTok makes lots of money and is now ready to share it with the folks who provide its platform’s content. The company has announced a new plan that will see more money go to creators when their videos appear with some ads. The creator will get a cut of the revenue, similar to how YouTube does payouts.
With this move, TikTok is establishing a more tangible way for creators to get compensated for their work.
The new payment plan comes under TikTok Pulse, as announced on the company’s blog. TikTok will place ads when showing videos from the top 4 percent of the content on the platform. However, you must have more than 100,000 followers to qualify for a payment when your video carries an ad.
TikTok says it will give creators 50 percent of the revenue from each ad, which is not too far from YouTube, which offers 55 percent, reportedly.
Creators in the US will be the first to benefit from the new program, starting next month. Other markets will join this fall.
TikTok has been compensating its creators from its Creator Fund. However, creators get paid based on the popularity of their videos. The issue with Creator Fund, according to content makers, is that the payments can be small and inconsistent, making them hard to live on. In contrast, YouTubers have been able to sustain themselves and even pay staff from their earnings.
Here is TikTok’s blog announcing TikTok Pulse for advertisers partly reproduced:
“Every day, we see culture created on TikTok. Small moments can turn into trends that entertain and inspire us — moments that make us laugh, think, or simply allow us to feel seen and heard. At the heart of TikTok is an entertainment experience fueled by the imagination of communities and creators and powered by discovery.
“This experience has opened the doors for brands and advertisers to not only put their brand in the center of where culture is created, but to actually be a part of the conversation. From #beautytok to #booktok to #sportstok, content and communities exist for every interest and passion imaginable. When brands embrace the creativity of TikTok and engage with relevant communities and creators, they align with the content people love.
“To help brands be on the pulse of entertainment and culture on TikTok, we’re excited to introduce TikTok Pulse, a new contextual advertising solution that lets advertisers place their brand next to the top content in the For You Feed. TikTok Pulse is designed to give brands the tools and controls to be a part of these everyday moments and trends that engage the community.”